Despite Selling Fewer iPhones, Apple is Still Making a Profit
Towards the end of 2017, Apple sold fewer iPhones than the previous year. However, the high cost of the latest iPhone X model compensated for the dip in sales. The company still managed to obtain $20bn (£14bn) in quarterly profits, with strong growth in Japan and Europe.
Despite the high asking price of the iPhone X ($1,000) the product still managed to “surpass expectations”. The device’s release coincided with the tenth anniversary of the iPhone. Since the launch, the iPhone X has remained Apple’s best-selling handset every week.
Uncertain Future for Apple
Even though reported profits were high, the coming months look uncertain for Apple. The number of iPhones sold has decreased by 1% consistently each year to 77.3 million. The sales forecast issued by the company appears to be “weaker than expected”. As a result, investors are concerned that the demand for Apple products is in decline.
Slower demand may be due to the iPhone X being a superior phone model. Apple had launched three phones during 2017; the iPhone 8 and 8 Plus simply didn’t compare to the X. Consumers became concerned that the presence of such an advanced phone would make older and cheaper handsets obsolete. Additionally, the high price of the iPhone X drove more people towards seeking different models that were much more affordable.
iPhones Could be in Trouble
However, the high price of the iPhone X made up for the lack-lustre sales figures. This may have worked during the last sales quarter, but there are questions of how long Apple can maintain such a strategy and how the company can compete with other advanced handsets that are on the market.
Currently, there are 1.3 billion active Apple devices used across the world which has established a strong customer base. Nevertheless, it is uncertain if these customers will remain loyal to Apple given that they are under investigation for deliberately impairing the performance of older iPhone handsets. Though Apple have issued an apology, their reputation has been tainted, with affected customers losing faith in the company.